The new ASU: what to expect

The new Aircraft Sector Understanding (Nasu) is scheduled to
enter into force at the beginning of February. The new terms
are going to be stricter than the 2007 Aircraft Sector
Understanding (Asu) in order to make export credit less
attractive to eligible airlines with access to the commercial
markets. After the final multilateral negotiations finished in
January, the new agreement is supposed to take effect from
February 1.

Whereas the 2007 Asu had two different categories for
different jet sizes, the 2011 Nasu will apply the same
financing rules to all aircraft types manufactured in the OECD
countries and Brazil. Other terms will include a maximum of
12-year financing, eight risk categories and a 10% maximum Cape
Town discount. Ratifying the Cape Town Treaty with the right
declarations can save an airline between 0.72% and 1.47%.